Pennsylvania licensing issue could delay Bally's Intralot acquisition of Evoke

The planned purchase of Evoke by Bally's Intralot may run into a regulatory obstacle in Pennsylvania. An existing business-to-business contract between an Evoke subsidiary and Caesars clashes with licensing rules that touch the buyer's US parent company. Whether the deal closes on schedule may depend on how state regulators respond to a proposed fix.

Shareholders approved the takeover in August, and completion is expected in the fourth quarter of 2026 or the first quarter of 2027. Analysts have mostly seen the transaction as positive for Evoke, since it would relieve a large part of the company's debt burden. Before approval, however, the Pennsylvania Gaming Control Board (PGCB) has to settle an unusual licensing question.

According to a Next.io report, Evoke largely pulled back from the US consumer market after a $50 million agreement ended its partnership with Sports Illustrated in 2024. It still serves Caesars through its subsidiary 888 Atlantic, supplying technology, player account management and customer support for the World Series of Poker online offering in Pennsylvania. The arrangement dates to January 2012 and runs under an interactive gaming manufacturer license, which allows a wind-down period of up to six months.

The conflict arises from Pennsylvania's rules for companies holding both an interactive gaming manufacturer license and interactive gaming certificates. Bally's Corporation, the parent of Bally's Intralot, owns Bally's Pennsylvania, a licensed online casino operator with two such certificates.

Standard licensing reviews can take more than nine months, which could push the acquisition past the expected window. Evoke said last week that the deal remained on track and that most regulatory approvals were already secured. The companies have proposed that 888 Atlantic surrender its Pennsylvania manufacturer license, with temporary arrangements allowing it to wind down operations. Pennsylvania's Office of Enforcement Counsel has reportedly advised against this, though the PGCB makes the final decision. If the board accepts the plan, the office suggested safeguards including weekly updates to enforcement officials, final approval before the surrender takes effect, and limits preventing unlicensed individuals from gaining control of 888 Atlantic.

The issue comes as Evoke faces mounting pressure. It recently reported Q3 revenue of GBP 406 million ($540.36 million), down 7% from 2025, and was forced to close 270 UK William Hill betting shops.